Prosecutors in Brooklyn, New York, in partnership with the Federal Bureau of Investigation, have dismantled a cryptocurrency scam network based in Eastern Europe. Authorities targeted the group after it was accused of stealing tens of millions of dollars from Americans, mainly Russian-speaking individuals.
Major operation targets crypto fraud
The enforcement operation was conducted last week and publicly disclosed on Wednesday. Investigators shut down 241 websites and seized 112 servers linked to the network. Hosting for these servers was provided by companies located in both Eastern Europe and the United States.
The Brooklyn District Attorney’s Office stated that no arrests have been made in connection with the investigation. However, officials described the seizure of digital infrastructure as a critical move to disrupt the scam’s operations and prevent further victimization.
Complex investment scheme exposed
Eric Gonzalez, the Brooklyn District Attorney, said the suspects orchestrated a sophisticated investment scam targeting Russian-speaking victims. After obtaining significant sums through the fraudulent investment platform, the operation then attempted to lure the same victims with misleading offers to recover their lost funds.
These criminals stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then tried to exploit them again with false promises to recover their money.
Gonzalez credited the District Attorney’s Virtual Currency Unit and the FBI for mapping out the technical network supporting the operation. The targeting of servers prevented the fraudsters from creating new websites or communicating with their victims.
Alona Katz, Assistant District Attorney leading the probe, explained that disabling the servers halted the backend workings of the scam. She reported that cutting off the digital infrastructure made it impossible for perpetrators to continue launching or operating fraudulent websites.
The successful operation comes as cryptocurrency-related scams become more prevalent in the United States. According to figures compiled by the FBI, Americans reported $11.4 billion in cryptocurrency fraud losses in 2025, representing a 22% increase over the previous year.
Disabling the backend infrastructure was key, as it stopped the scammers from making new sites or reaching out to victims.
The Brooklyn District Attorney emphasized ongoing efforts to combat digital investment frauds, while urging the public to remain vigilant about the risks of online schemes used to target vulnerable communities.
The FBI, on the other hand, serves as the main federal law enforcement agency investigating financial crimes, including those involving digital assets. The Bureau frequently issues warnings about the rapidly evolving landscape of crypto-related fraud targeting consumers nationwide.
Mini dictionary: Brooklyn District Attorney’s Office: The principal prosecutor’s office for Kings County, New York, responsible for criminal investigations and prosecutions in the borough of Brooklyn.
As part of its public warning, the Brooklyn prosecutor’s office advised individuals to carefully verify investment platforms before transferring funds. Digital currency investors are encouraged to report suspicious activity to law enforcement agencies.
| Year | Reported US Crypto Fraud Losses | Year-over-Year Growth |
|---|---|---|
| 2024 | $9.34 billion | – |
| 2025 | $11.4 billion | 22% |
